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On
the first Sunday of each month Stockprowler will bring you his latest hot
stock pick profiled in depth ...free on the Web! And every week Stockprowler
updates the Stockprowler Watch box with exciting new potential momentum
plays. Stockprowler uses state of the art technology to look under the rocks
and find those little stocks with the potential to make the BIG moves.
Stockprowler screens NASDAQ, NYSE, AMEX, and OTC stocks trading under $3.
These stocks offer the speculator considerable leverage. It is not uncommon
for these stocks to make moves of 30%, 50%, or more. Please read our disclaimer before trading
in any stocks mentioned on this Website ... Here's the Stockprowler Report
for the month of April, 2005: |
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Stockprowler's pick this week...
Sure Trace Security Corp. (OTCBB: SSTY) 1073 Cambie St. Vancouver, British Columbia Phone: (504) 537-8200 Corporate Website: www.suretrace.com State of Incorporation: Utah Shares Outstanding: 150,459,000 (verified)
Sure Trace Security Corp. (OTC BB: SSTY) manufactures and markets proprietary security products for asset protection and brand authentication. The Washington Anti-Fraud Coalition estimates that U.S. businesses lose $300 billion annually due to theft and fraudulent replication of finished goods. It is estimated by the International Anti-Counterfeiting Coalition that the annual cost to companies of theft, copying and diversion of authentic brands is now 9% of U.S. GDP…and that the worldwide problem exceeds $1 trillion annually. In addition, employee theft is a major problem facing all mid- to large size companies. The U.S. Dept. of Labor estimates that the average employer loses $500 per employee per year to internal fraud. Sure Trace Security’s core technology is a patent pending “coded fluid” that has properties similar to synthetic DNA. The invisible coded fluid called a “taggant” can be applied to anything from fabric, to plastic, to metal and even paper. Once applied to the surface of literally any asset (tools & equipment), it actually sinks beneath the surface and bonds with the asset on a molecular basis. The taggant can withstand extreme abrasion, exposure to acids and solvents, and even 3,000 degree temperatures. Once applied, ownership can be guaranteed with certainty. For example, two identical assets owned by two different companies can be correctly identified as to which asset belongs to which owner with 100% accuracy. Each client receives a unique formulation of the taggant so those assets belonging to one client can always be identified as theirs. The company engaged Kroll & Associates, the worlds largest security firm, to assist in the development of a “chain of evidence” able to withstand legal scrutiny should a client ever wish to legally pursue an employee for theft. http://www.krollworldwide.com/
Once the tags are in place, analysis and verification is a simple process using a patented tag analyzer. The device has been likened to an invisible bar code scanner by those who have seen it demonstrated. In reality, the tag analyzer provides a sophisticated elemental analysis and access to the attached coded information. The system is virtually impossible to reverse engineer. Analysis of the elemental tags can be used to address such issues as quality control, genuine product verification, and supply and distribution chain diversion. Clients are able to authenticate their product at any point in the supply and distribution cycle. The client is able to track finished product or product components from point of manufacturing to final retail sale. This process can also be used to protect major brands, which are often counterfeited and sold through unwitting or "gray-market" retailers.
On November 11, 2004 Sure Trace Security Corp., in a move
to strongly enhance its single point anti-counterfeiting and loss prevention
solutions, announced Innov-X Systems of Woburn, Massachusetts as its
exclusive global supplier for the XRF scanner technology. Under the terms of
their agreement, Innov-X Systems will give Sure Trace exclusive security
industry rights to its XRF scanner. David Downes, President of Sure Trace
Security commented, saying: “We found the Innov-X hand-held scanner to
be head and shoulders above the competition. It is both technologically
superior as an XRF device and it has extremely desirable additional functions
that will significantly enhance our comprehensive single-point
anti-counterfeiting and loss prevention systems. The Innov-X scanner will
allow us to meet customer demands for wireless networking applications like
scanning at retail locations, ticket kiosks, and passport screening centers,
etc. The client-driven requirements that we are now seeing for our products
are tending to necessitate custom configuration. A typical example might be
utilizing networked scanner technology in a customs environment where agents
would verify passports using a desk-mounted scanner, wirelessly networked to
a local server that integrates multiple agents' units.” Worldwide, five other companies sell “coded fluids”. However, none of these companies utilize portable scanning technology… and, as such, require their clients to use a test called “laser ablation” to establish ownership. One competitor employs UV technology that is expensive… and stationary. In addition, its coded fluid is organic in nature… and sits on top of the surface of the asset. It also fades over time under natural light. SSTY has a significant advantage over this technology, as its product is inorganic, bonds with the asset on a molecular basis, will never fade, and is readable with a relatively, inexpensive portable scanner.
SSTY has an established track record in protecting all types of corporate assets including tools, computers, works of art, sports memorabilia, lottery tickets, casino checks and playing cards, and even diamonds. Many companies have reported a reduction in losses of up to 90% after introducing the SSTY asset protection programs as the primary loss prevention measure. The client list has many Fortune 500 companies including Ford Motor Company, Boeing, and GM Canada. The systems have proven so cost effective that clients have recovered the entire cost of the program in as little as three weeks.
On January 18, 2005 the company announced the signing of the first stage of a multi stage contract with a “top-five integrated, multi-national oil company.” The client has asked, and SSTY has agreed, not disclose specific terms of the agreement. David S. Downes, President of Sure Trace Security Corp. commenting about the contract said, “Starting 2005 with a new contract is a sign that our product is being recognized in the market. This contract demonstrates the depth of our technical solution in the loss prevention space and the growth potential of this space and the opportunity to rapidly grow revenue. The client, a top-five multi-national corporation already has plans to expand beyond this first division to other divisions with similar employee theft problems. Loss prevention has historically been the core of our business and we have incredible results in this space. Some of our major corporate clients report a 90% - plus reduction in employee theft after implementing our loss prevention solution.”
On January 20, 2005 Sure Trace Security Corp. announced that it has begun developing various key relationships on a global basis for the procurement of beneficial contracts for its product line. The relationships follow a distribution model that generates a royalty fee together with an equity stake in these regional distributors by which Sure Trace Security Corp. retains a predetermined equity stake in the various distributors and a percentage fee from gross revenues.
The first regional distributor to be established is Sure Trace Asia, which has been incorporated as STA Inc. in Hong Kong. Sure Trace along with its Asian partners are entering into a two part agreement, one for the distribution rights that Sure Trace Security Corp. will realize both a fee for granting the right to distribute its products as well as an equity stake for the shareholders of SSTY based upon the distribution model in Sure Trace Asia. Sure Trace shall receive a distribution fee of 15% of all gross revenues and an equity stake in SSTY Asia.
On January 25, 2005 it was announced that SSTY had acquired Globe Staff Consulting, Corp. without the issuance or commitment to issue any shares of Sure Trace Security Corp. The sole consideration granted to the shareholders of Globe Staff Consulting for the acquisition of 100% of the shares of that private company, was a contractual obligation for the creation of a new publicly traded NASDAQ Pink Sheet company to be named Globe Staff Corporation. The new public company will be granted an exclusive license to exploit the intellectual property presently owned by Globe Staff Consulting. The contractual obligation also requires the issue of 50% of the initial ownership back to the present shareholders of Globe Staff Consulting. Initially, Sure Trace Security Corp. will also hold 50% of the shares of Globe Staff Corp. It is anticipated that interest will be diluted by subsequent financings of Globe Staff Corp. However, by the terms of the Globe Staff Consulting acquisition agreement Sure Trace Security Corp. has the enshrined right to a permanent retained interest of 10%. In other words, subsequent financings can never dilute the equity interest of SureTrace Security Corp. below 10%. Additionally, Sure Trace Security Corp. will also retain a 10% royalty on the gross revenue of the Globe Staff Corporation. Commenting, SSTY CEO Jim MacKay stated, “We have once again avoided further dilution of our shareholders and earned a royalty interest and equity stake by trading upon the value of our public company and its ability to spawn other public entities. We are most pleased to have delivered this win-win conclusion to all parties.”
Stockprowler.com views SSTY as a high risk – high reward speculation. It should be noted, that on March 31, 2005 the company filed an 8-K and NT 10-K regarding a change in auditors and a late filing… the company has replaced its Canadian auditing firm, having decided for SEC compliance purposes it would be better served by a U.S. auditing company. So, don’t be surprised if a temporary ticker symbol change occurs this week to SSTYE reflecting the late filing notification. Stockprowler.com does not receive compensation from companies we profile or from third parties... we never have and never will. We use our own money when we buy stocks, and even though we usually take a position in a stock before we profile a company, our purchases are small relative to the public float so that the effect on the stock price when we buy or sell is minimal. Please read our full disclaimer. Also, contrary to a commonly held belief, Stockprowler does not have access to insider information, nor do we want to because trading on insider information is illegal! All information contained in our reports is available in the public record... and any written or verbal communication with company CEOs/IR people strictly adheres to this rule. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock. Good Trading... Stockprowler |
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